Rowdy Company's first year in operation was 2014. The following events occurred in 2014:
1. Acquired $5,000 stock from issuing common stock.
2. Purchased inventory for $3,000 cash.
3. Sold inventory that had cost $2,100 for $3,600 cash.
Required:
a) Record the events in the statements model, below. Show amounts of increases and decreases. Indicate whether each cash flow is an operating activity, investing activity, or financing activity.
b) Determine the total for each column after you have recorded the events.
c) What was the amount of total assets at the end of the period?

Question

Rowdy Company's first year in operation was 2014. The following events occurred in 2014:
1. Acquired $5,000 stock from issuing common stock.
2. Purchased inventory for $3,000 cash.
3. Sold inventory that had cost $2,100 for $3,600 cash.
Required:
a) Record the events in the statements model, below. Show amounts of increases and decreases. Indicate whether each cash flow is an operating activity, investing activity, or financing activity.  
b) Determine the total for each column after you have recorded the events.
c) What was the amount of total assets at the end of the period?

Quizplus · Accepted Answer

The Answer of Rowdy Company's first year in operation was 2014. The following events occurred in 2014:
1. Acquired $5,000 stock from issuing common stock.
2. Purchased inventory for $3,000 cash.
3. Sold inventory that had cost $2,100 for $3,600 cash.
Required:
a) Record the events in the statements model, below. Show amounts of increases and decreases. Indicate whether each cash flow is an operating activity, investing activity, or financing activity.  
b) Determine the total for each column after you have recorded the events.
c) What was the amount of total assets at the end of the period?

Rowdy Company's First Year in Operation Was 2014